FAC Explorer

Finding 8995 (2023-002)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-01-18
Audit: 12341
Organization: Mid-South Food Bank (TN)
Auditor: Reynolds Bone & Griesbeck Plc

AI Summary

  • Core Issue: Lack of supporting documentation for eligible recipients of mobile pantry distributions and inadequate documentation for grant charges.
  • Impacted Requirements: Compliance with documentation standards set by MDHS for administrative reimbursements.
  • Recommended Follow-up: Address documentation gaps and prepare to respond to MDHS regarding the requested refund of $429,208.

Finding Text

For the Tennessee USDA commodities, management did not maintain supporting documentation for eligible recipients of mobile pantry distributions (2 instances). According to a the Mississippi Department of Human Services (MDHS) letter dated December 4, 2023, MDHS alleges that management failed to provide adequate supporting documentation for amounts charged to the grant (26 instances) for administrative reimbursements and has requested that the Food Bank refund MDHS for $429,208.

Corrective Action Plan

The deficiency of lack of proper documentation for two mobile distributions is due to oversite by our agency relations team to ensure proper recipient paperwork is maintained at each mobile distribution. Our added mobile distributions to meet the increased need for food in our community has tripled this workload. Staff has been retrained to ensure the proper paperwork is filed. Mississippi DHS alleges our food bank has not provided adequate supporting documentation for two TEFAP contracts ending September 30, 2022. The CEO of the food bank and many staff members worked with MS DHS for 14 months and feel we have provided everything requested and cooperated every way we can. This was our first contract with MS DHS and the learning curve for reporting has been great. The reimbursement request by MS DHS is currently being appealed.

Categories

Questioned Costs Cash Management

Other Findings in this Audit

  • 8991 2023-001
    Material Weakness Repeat
  • 8992 2023-001
    Material Weakness Repeat
  • 8993 2023-001
    Material Weakness Repeat
  • 8994 2023-001
    Material Weakness Repeat
  • 8996 2023-002
    Material Weakness
  • 8997 2023-002
    Material Weakness
  • 8998 2023-002
    Material Weakness
  • 8999 2023-003
    Significant Deficiency
  • 9000 2023-003
    Significant Deficiency
  • 9001 2023-003
    Significant Deficiency
  • 585433 2023-001
    Material Weakness Repeat
  • 585434 2023-001
    Material Weakness Repeat
  • 585435 2023-001
    Material Weakness Repeat
  • 585436 2023-001
    Material Weakness Repeat
  • 585437 2023-002
    Material Weakness
  • 585438 2023-002
    Material Weakness
  • 585439 2023-002
    Material Weakness
  • 585440 2023-002
    Material Weakness
  • 585441 2023-003
    Significant Deficiency
  • 585442 2023-003
    Significant Deficiency
  • 585443 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $4.06M
10.568 Emergency Food Assistance Program (administrative Costs) $220,301
21.027 Coronavirus State and Local Fiscal Recovery Funds $141,377
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $140,503
97.024 Emergency Food and Shelter National Board Program $100,000
10.187 Commodity Credit Corporation $53,079
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $32,232
10.182 Local Food Purchase Assistance $28,550
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $13,127